Daily Market Color 05/23/2013

Daily Market Color

05/23/2013

Economic Reports & Headlines

The global economic calendar for today was rather lengthy. There were a slew of flash PMI reports. Let’s begin with France. France’s flash PMI reading for May was mixed but better than last month’s reading. The manufacturing component beat consensus but still contracted, 45.5 Vs 44.4. Services missed estimates and contracted 44.3 vs 44.4.

Germany’s flash PMI composite reading was mixed as well. Manufacturing beat consensus and it beat last month’s reading but it still contracted, 49.0 Vs 48.4. Services contracted as well and missed estimates by a slight margin.

The Eurozone flash PMI composite beat economists’ estimates but still gave a sub-50 reading which indicates contraction. On the manufacturing front the flash PMI reading was, 47.8 Vs 47.1. On the services front the flash PMI reading was, 47.5 vs 47.2     

First quarter GDP in the UK was in line with consensus on a quarter over quarter basis, rising 30bps.

On the domestic front, jobless claims in the US fell more than expected for the week ending on 5/18, 340k Vs 345k.

 The Flash manufacturing reading in the US came in higher than expected, 51.9 Vs 50.8. any reading above 50 indicates an expansion.

New home sales in the US surpassed analysts’ estimates by a wide margin, 454k Vs 425k.

Future Reports

Tonight we will look forward to New Zealand’s merchandise trade report. Markets are expecting a surplus of $157m.

Tomorrow we will get a GDP reading from the Germans.

On the domestic front we will get a read on durable goods for April.   

Trade

It appears that a correction is taking place in Japan’s equity markets. Many market participants are wondering when a correction will occur in the US. They are many reports that are forthcoming that could serve as the catalysts.